Amended in Assembly June 15, 2014

Amended in Senate April 29, 2014

Amended in Senate April 8, 2014

Amended in Senate March 26, 2014

Senate Bill No. 1348

Introduced by Senator DeSaulnier

February 21, 2014

An act to add Chapter 22.3 (commencing with Section 22590) to Division 8 of the Business and Professions Code, relating to personal information.

LEGISLATIVE COUNSEL’S DIGEST

SB 1348, as amended, DeSaulnier. begin delete Online data end delete begin insert Data end insert brokers: sale of personal begin delete information: notice. end delete begin insert information. end insert

Existing law protects the privacy of personal information, including customer records, and requires a business that owns or licenses personal information about a California resident to implement and maintain reasonable security procedures and practices appropriate to the nature of the information, in order to protect the personal information from unauthorized access, destruction, use, modification, or disclosure.

Existing law requires an operator of a commercial Internet Web site or online service that collects personally identifiable information through the Internet about consumers residing in California who use or visit its commercial Internet Web site or online service to conspicuously post its privacy policy on its Internet Web site or online service and to comply with that policy.

Unless prohibited by federal or state law, this bill would require begin delete an online data end delete begin insert a data end insert broker, as defined, that sells or offers for sale to a 3rd party the personal information of any resident of California, to permit a subject individual, as defined, to begin delete (1) end delete review his or her personal begin delete information and (2) correct his or her personal end delete information, as specified. The bill would require begin delete an online data end delete begin insert a data end insert broker, unless prohibited by federal or state law, to conspicuously post an opt-out notice on its Internet Web site that would include specific begin insert and easily understood end insert instructions for permanently removing personal information from the online data broker’s database by making a begin delete written end delete demand requesting begin delete to have the information permanently removed. end delete begin insert that his or her personal information not be shared with or sold to third parties. end insert The bill would require begin delete an online data end delete begin insert a data end insert broker that receives a begin delete written end delete demand from a subject individual pursuant to these provisions, unless prohibited by federal or state law, to begin delete remove the subject individual’s personal information from public display on the Internet within 10 days of delivery of the written demand, and to take specified additional steps to ensure that the information is not reposted. end delete begin insert cease sharing or selling that information with third parties as soon as is reasonably possible, and thereafter to only retain as much personal information as is reasonably necessary to comply with the subject individual’s demand. end insert

This bill would also make it unlawful for begin delete an online data end delete begin insert a data end insert broker to solicit or accept the payment of a fee or other consideration to review or permanently remove personal information from the begin delete online end delete data broker’s database, and would authorize a subject individual to bring a civil action against any person in violation of these provisions. begin delete The bill’s provisions would apply only to information collected, assembled, or maintained by an online data broker on and after January 1, 2015, except under designated circumstances. end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Chapter 22.3 (commencing with Section 22590)
is added to Division 8 of the Business and Professions Code, to
read:

 

Chapter  22.3. begin delete Online end delete Data Brokers

 

22590.  

The following definitions apply to this chapter:

(a) “Conspicuously post,” with respect to an opt-out notice,
means to post through any of the following:

(1) An Internet Web page on which the actual opt-out notice is
posted if the Internet Web page is the homepage or first significant
page after entering the Internet Web site.

(2) An icon that hyperlinks to an Internet Web page on which
the actual opt-out notice is posted, if the icon is located on the
homepage or the first significant page after entering the Internet
Web site, and if the icon contains the term “opt out” or “opt-out.”
The icon shall also use a color that contrasts with the background
color of the Internet Web page or is otherwise distinguishable.

(3) A text link that hyperlinks to an Internet Web page on which
the actual opt-out notice is posted, if the text link is located on the
homepage or first significant page after entering the Internet Web
site, and if the text link does one of the following:

(A) Includes the term “opt out” or “opt-out.”

(B) Is written in capital letters equal to or greater in size than
the surrounding text.

(C) Is written in larger type than the surrounding text, or in
contrasting type, font, or color to the surrounding text of the same
size, or set off from the surrounding text of the same size by
symbols or other marks that call attention to the language.

(4) Any other functional hyperlink that is so displayed that a
reasonable person would notice it and understand it to begin insert be a end insert
hyperlink to the actual opt-out notice.

(b)  begin delete “Online data broker” end delete begin insert (1) end insert begin insert   end insert begin insert “Data broker” end insert means a
commercial entity that collects, assembles, or maintains personal
information concerning individuals residing in California who are
not customers or employees of that entity, for the purposes of
selling or offering for sale begin insert , or other consideration, end insert the personal
information begin delete over the Internet end delete to a third party.

begin insert

(2) “Data broker” does not include any of the following:

end insert begin insert

(A) A commercial entity that sells personal information to the
subject individual or his or her representative.

end insert begin insert

(B) A commercial entity engaging in the activities of a
“consumer reporting agency” pursuant to the Fair Credit
Reporting Act (15 U.S.C. Sec. 1681 et seq.)

end insert begin insert

(C) A commercial entity engaging in the activities of a
“consumer credit reporting agency” pursuant to the Consumer
Credit Reporting Agencies Act Title 1.6 (commencing with Section
1785.1) of Part 4 of Division 3 of the Civil Code.

end insert begin insert

(D) A commercial entity selling or providing for sale personal
information to other commercial or nonprofit entities or
government agencies that will use the information for purposes
permitted to be used or disclosed pursuant to any applicable
provision of Title V of the Gramm-Leach-Bliley Act (15 U.S.C.
Sec. 6801 et seq.), including purposes such as identity confirmation
and fraud prevention.

end insert

(c) “Personal information” means any information that identifies,
relates to, describes, or is capable of being associated with, a
particular individual, including, but not limited to, his or her name,
signature, social security number, physical characteristics or
description, address, telephone number, passport number, driver’s
license or state identification card number, insurance policy
number, education, employment, employment history, bank account
number, credit card number, debit card number, or any other
financial information, medical information, or health insurance
information. “Personal information” does not include information
that is lawfully made available to the general public from federal,
state, or local government records.

begin delete

(d) “Publicly post” or “publicly display” means to intentionally
communicate or otherwise make available to the general public.

end delete begin delete

(e)

end delete

begin insert (d) end insert  “Subject individual” means the person to whom personal
information pertains.

begin delete

(f)  “Written” means documentation in writing, and includes
facsimile, telegraphic, and other forms of electronic
communication.

end delete

begin delete

22591.  

Unless prohibited by federal or state law, an online data
broker that sells or offers for sale the personal information of any
resident of California to a third party, shall do both of the
following:

(a) Permit a subject individual to review his or her personal
information that has been collected, assembled, or maintained by
the online data broker, either by submitting a written request or
by means of an electronic search through a secure online system.

(b) Permit a subject individual to correct his or her personal
information that has been collected, assembled, or maintained by
the online data broker, either by submitting a written request or
by correcting the information by means of a secure online system.

end delete begin delete

22592.  

(a) (1) Unless prohibited by federal or state law, an
online data broker shall conspicuously post an opt-out notice on
its Internet Web site, which shall include specific instructions for
permanently removing personal information from the online data
broker’s database by making a written demand requesting to have
the information removed.

(2) If a subject individual makes a written demand to remove
his or her personal information from an online data broker’s
database pursuant to this subdivision, the online data broker shall
permanently remove the subject individual’s personal information
from its database, in accordance with subdivision (b).

(b) (1) Unless prohibited by federal or state law, an online data
broker that receives a written demand from a subject individual
pursuant to this section shall remove the subject individual’s
personal information from public display on the Internet within
10 days of delivery of the written demand, and shall ensure that
this information is not reposted on the same Internet Web site, a
subsidiary site, or any other Internet Web site owned, controlled,
or maintained by the online data broker receiving the written
demand.

(2) After receiving a subject individual’s written demand, the
online data broker shall not transfer the subject individual’s
personal information to any other person, business, or association
through any other medium.

(3) Any additional information collected by an online data
broker to confirm the identity of a subject individual who has made
a written request to remove his or her personal information from
a database pursuant to this chapter shall be deleted after the identity
of the subject individual has been confirmed and shall not be used
for any other purpose.

22593.  

(a) It is unlawful for an online data broker to solicit or
accept the payment of a fee or other consideration to review or
permanently remove personal information from the online data
broker’s database.

(b) Each payment solicited or accepted in violation of this
section constitutes a separate violation.

end delete begin insert

begin insert 22591. end insert   

Unless prohibited by federal or state law, a data broker
that sells or offers for sale the personal information of any resident
of California to a third party shall do both of the following:

(a) Permit a subject individual to review his or her personal
information that has been collected, assembled, or maintained by
the data broker by submitting an electronic demand through a
secure online system.

(b) (1) The data broker shall conspicuously post an opt-out
notice on its Internet Web site, which shall include specific and
easily understood instructions for the subject individual to make
a demand on the Internet Web site that his or her personal
information not be shared with or sold to third parties.

(2) If a subject individual makes a demand on the Internet Web
site that his or her personal information not be shared with or sold
to third parties, the data broker shall cease sharing or selling that
information with third parties as soon as is reasonably possible,
and in no event later than 10 days after receipt of the notice, and
the data broker shall thereafter retain only as much personal
information as is reasonably necessary to comply with the subject
individual's demand.

(3) After receiving a subject individual’s demand, the data
broker shall not transfer the subject individual’s personal
information to any other person, business, or association through
any other medium.

(4) Any information collected by a data broker to confirm the
identity of a subject individual who has made a demand to remove
his or her personal information from a database pursuant to this
chapter shall be deleted after the identity of the subject individual
has been confirmed and shall not be used for any other purpose.

end insert begin insert

begin insert 22592. end insert   

(a) It is unlawful for a data broker to solicit or accept
the payment of a fee or other consideration to review or
permanently remove personal information from the data broker’s
database.

(b) Each payment solicited or accepted in violation of this
section constitutes a separate violation.

end insert

begin delete 22594. end delete
begin insert 22593. end insert   

In addition to any other sanction, penalty, or remedy
provided by law, a subject individual may bring a civil action in
any court of competent jurisdiction against any person in violation
of this chapter for damages in an amount equal to the greater of
one thousand dollars ($1,000) per violation or the actual damages
suffered by the subject individual as a result, along with costs,
reasonable attorney’s fees, and any other legal or equitable relief.

begin delete

22595.  

(a) This chapter shall only apply to personal
information that is collected, assembled, or maintained by an online
data broker after January 1, 2015.

(b) Notwithstanding subdivision (a), this chapter shall apply to
information collected, assembled, or maintained by an online data
broker prior to January 1, 2015, if the data broker collected,
assembled, or maintained the information in violation of any law
or regulation.

end delete